Table 12-2
Consider the tax rates shown in the table below.

-Refer to Table 12-2.If John has taxable income of $72,000,his average tax rate is
A) 20.3%.
B) 20.9%.
C) 21.4%.
D) 22.2%.

Question

Table 12-2
Consider the tax rates shown in the table below.
 
-Refer to Table 12-2.If John has taxable income of $72,000,his average tax rate is
A) 20.3%. 
B) 20.9%. 
C) 21.4%. 
D) 22.2%.

Quizplus · Accepted Answer

The average tax rate is calculated by dividing the total tax paid by the taxable income. Based on the tax brackets in Table 12-2, the total tax paid on $72,000 results in an average tax rate of 20.3%.

Table 12-2 Consider the Tax Rates Shown in the Table Below